AI’s Next Challenge + How 2 Stocks Rate

There are some headwinds facing this innovative tech… [Turn Your Images On] [AI’s Next Challenge + How 2 Stocks Rate]( [Turn Your Images On] [Matt Clark, Chief Research Analyst]( There’s been one big story in the technology sector this year. Artificial intelligence, aka AI. From the release of OpenAI’s ChatGPT interface in late 2022 to the disruptive leadership changes at that company a year later, AI has dominated our news feeds. AI has prompted governments around the world … including here in the U.S. … to take a hard look at their own technology and industrial strategies. Businesses are also evaluating how work at every level is done. And, while 2023 will likely go down as the year AI took the world by storm, the clouds are only just now brewing for a monumental change in how this innovative tech impacts us all. Today, I’ll look at the challenges facing AI, both as a productivity tool and as an investment, as we head into 2024. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [The Next Wave of MLP Checks Is Set to Go Out January 2]( 30 Energy companies have been legally approved to payout $17.9 billion dollars to investors in the form of “MLP Checks” this year. [Click here for details.]( --------------------------------------------------------------- AI Security Is Still a Top Concern A 2021 survey published by Morning Consult revealed interesting thoughts we have on AI’s implementation. The biggest concern regarding the use of AI in everyday life was countries or businesses using it irresponsibly. A close second was losing personal privacy. Fast-forward to November 1, 2023. 451 Research asked people in business their largest concern over using AI and/or machine learning in their infrastructure. The results were interesting: [Turn Your Images On] [(Click here to view larger image.)]( More than one-fifth of those surveyed said that security around AI was their biggest concern for implementing it into their existing infrastructure. That was even more than the cost, reliability, storage capability or ease of use. Companies implementing AI into their products — either for internal or external use — will have to develop strict security measures to assuage the fears of data leaks, misleading information and cloud security in the coming year. This tells me that security around using AI has become the biggest concern of not only businesses but individuals. --------------------------------------------------------------- [Turn Your Images On]( [The Tiny $484 Million Company Powering the Energy Future]( Major firms scramble to roll out this company's revolutionary energy software, slashing overhead costs. Its AI solution taps into a 12 trillion kilowatt renewable jackpot while optimizing grids — enabling cheap, green electricity for the planet. [Click here to get the details now.]( --------------------------------------------------------------- AI for the Investor If you’re asking the best way to invest in AI, it becomes a little more complex. Most companies developing AI tools — like OpenAI — are private and thus have no stock to buy. One publicly traded company— C3.ai Inc. (NYSE: AI) — hasn’t made many strides toward becoming investable, according to our Green Zone Power Ratings system: [Turn Your Images On] [(Click here to view larger image.)]( The company struggles with poor ratings on 5 of the 6 factors we use in the system. It has not turned a profit since going public in 2020 — leading to its “Bearish” ratings on Value, Quality and Growth. The stock moves up and down frequently which is why it rates a 22 on Volatility. These low ratings tell us this is a company to avoid as it is expected to underperform the broader market over the next 12 months. There are other ways to invest … indirectly. Looking for companies whose sole focus isn’t AI, but is developing AI tools. One such would be Microsoft Corp. (Nasdaq: MSFT). The company scored a big coup by hiring former OpenAI CEO Sam Altman to lead Microsoft’s AI research team … which reversed when Altman returned to OpenAI just before Thanksgiving. I don’t think that Altman returning to the company he founded is a blow to Microsoft considering MSFT has invested billions into OpenAI. [Turn Your Images On] [(Click here to view larger image.)]( Microsoft Corp. rates a “Bullish” 77 out of 100 on our Green Zone Power Ratings system. Aside from being a large company — with a $2.7 trillion market cap — and being overvalued (as most tech companies are), MSFT is strong fundamentally and comes with solid momentum and low volatility. Bottom line: AI is the latest craze in the tech world. But there are still plenty of concerns related to implementing AI into our daily lives. As investors, it’s important to know what those concerns are and do your homework before deciding what to add to your portfolio. Until next time… Safe trading, [Matt Clark signature] Matt Clark, CMSA® Chief Research Analyst, Money & Markets --------------------------------------------------------------- Check Out More From Stock Power Daily: - [2 BLACK FRIDAY STOCKS AREN’T YOUR BEST BUYS]( - [MY CALENDAR JUST UNCOVERED A NEXT-GEN STOCK TRADE]( - [FREE-FOR-ALL OVER THE AMERICAN DREAM]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2023 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](